How to Stay Smart When Buying a Home

Written by on January 10, 2014 in Money - No comments | Print this page

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Classic-House

Classic-House

Buying a home is a long-term commitment. You can hear all types of warnings and advice from people, but until you can really let it sink in, you won’t realize just how intense home buying is.

It’s easy to get caught up in the excitement of it all and let the small but important details slip by. Whether it’s your first purchase or your fifth, these tips will help you to stay smart when you are buying a home.

Know Your Needs

Before you even begin looking at homes, you should consider what you need out of a home.

Are you a bachelor not looking to sway from your independent lifestyle any time soon? It may not be wise to invest in a five bedroom house right now (unless you’re looking to rent some space out to your buddies). Are you anticipating starting a family in the next few years? You should keep that in mind when deciding on the location and space of your potential home.

Know what you will need for the future as well as what you will not need. Limit your list of “must-haves” in a home to features that are actually a necessity.

Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage will give you a better idea of what your price range should be. Be sure to ask friends for referrals of reliable credit unions. Always ask about additional fees and closing costs as those will increase how much your home will cost you (by several thousand dollars).

Being prepared to buy a home by being pre-approved will save you hurdles and headaches down the road. Remember that you should aim to put down 20% of the cost of your home, so keep that in mind with your budgeting.

Hire the Necessary Help

Some people have found that they are capable of completing the home buying process entirely on their own. Either these people are superheroes or too naïve for their own good.

Some people can sneak by without needing to hire a realtor. However, having a realtor will help you significantly when it comes to finding a home that will be a good fit for you and negotiating the price. A realtor can also help you know what you’re looking for in a home and determine what homes might be the best options for your needs and your budget.

A real estate lawyer can also help you when it comes to closing on a house and any additional costs you may encounter. If you are buying from a long distance, from a foreclosed property, or a property with structural issues, you will definitely need to enlist a real estate lawyer for assistance. Check the laws and regulations in your area to see if it might be required for other circumstances.

Home inspections are not a step that you’ll ever want to skip. Even if you consider yourself to be a home building expert, you should still hire a home inspector to give your potential home an extra look-over. The fresh pair of eyes may see things that you didn’t notice before. If you are unfamiliar with the problems that you could encounter when buying a home, an inspector will let you know what to watch for and if there are any areas that need to be fixed right away.

Stay focused and smart as you seek out a home to buy. Keep your end goals in sight and don’t let the excitement of a beautiful potential home blind you. Detach yourself emotionally from the process and try to stay as professional as possible. Once you close and everything is final, then you can let your emotions soar!

Edson Senna is a business student. He enjoys applying what he has learned by writing about investing, finance, entrepreneurship, and other business-related topics. To find Lawyers in St. Johns Newfoundland, check the Rogers Bussey website.

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